From the CBS News Video Web site, an interesting story for anyone who's recently applied for mortgage credit.

The three major credit bureaus -- Experian, Equifax, and TransUnion -- sell the contact information of new mortgage loan applicants to other mortgage lenders that want to compete for the same business.

It works like this:

• You call your loan officer for a rate quote
• Your loan officer submits a credit report to the credit bureaus
• The credit bureaus recognize that you are applying for a mortgage loan
• The credit bureaus sell your financial information to other loan officers around the country
• The other loan officers call you at your home with new offers for credit

Called "trigger leads", this system of lead marketing identifies a person making a lending decision right now. It's no wonder that lenders are salivating over them.  One marketer of trigger leads calls them "the best leads in the business". 

Trigger lead critics cite privacy concerns as a major problem but supporters of the system say that the risk is offset by giving consumers more choices in lending and, therefore, better prices.

As the family in the CBS video learned, however, it's difficult to get the phone to stop ringing once it starts.  Some of the calls bordered on harassment.  It makes me embarrassed for my industry, actually.

Consumers can stop the calls before they start, if they choose. 

There is a very low-tech, opt-out Web site called http://www.optoutprescreen.com that is sponsored by the three major credit bureaus.  On the site, you can opt yourself out from credit offerings for five years, or submit a form by mail to opt out forever.

Watch the video and then go protect yourself (if you're so inclined).

(Image courtesy: CBS News Video)

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Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.